IEYOUB v. PHILIP MORRIS, USA, INC.

Nos. CA 2008-33, CW 2008-150, CW 2008-164.

982 So.2d 296 (2008)

Richard IEYOUB, Attorney General, State of LA v. PHILIP MORRIS, USA, INC., et al.

Court of Appeal of Louisiana, Third Circuit.

April 30, 2008.


Attorney(s) appearing for the Case

Terry Christovich Gay, Christovich & Kearney, LLP, New Orleans, LA, for Secondary Defendants/Appellants, Farmers Tobacco Company of Cynthiana, Inc., Vibo Corporation.

James R. Nieset, Plauche, Smith, & Nieset, Lake Charles, LA, for Defendant/Appellant, R.J. Reynolds Tobacco Company.

Stephen R. Patton, Kirkland & Ellis, LLP, Chicago, IL, Jerome Doak, Jones Day, Dallas, TX, R. Dale Burton, Womble Caryle Sandridge & Rice, Atlanta, GA, Thomas McKim, R.J. Reynolds Tobacco Company, Winston-Salem, NC, for Defendant/Applicant, R.J. Reynolds Tobacco Company.

Phillip A. Wittmann, Stone, Pigman, Walther, Wittman, LLC, New Orleans, LA, for Defendants/Appellants, R.J. Reynolds Tobacco Company, Lorillard Tobacco Company.

Gayle Rosenstein, Idit Froim, Weil, Gotshal & Manges, LLP, New York, NY, Ronald S. Milstein, Brian McGinn, Lorillard Tobacco Company, Greensboro, NC, for Defendant/Applicant, Lorillard Tobacco Company.

Charles C. Foti, Jr., Attorney General, Louisiana Department of Justice, Litigation Division, Baton Rouge, LA, for Plaintiff/Respondent, Richard P. Ieyoub, Attorney General.

David G. Sanders, Patricia Hill Wilton, Gol S. Hannaman, Angelique D. Freel, Stacie L. DeBlieux, Assistant Attorneys General, Baton Rouge, LA, for Plaintiff/Appellee, Richard P. Ieyoub, Attorney General.

Martin A. Stern, Jeffrey E. Richardson, Ann Koppel, Adams & Reese, LLP, New Orleans, LA, for Defendant/Appellant, Philip Morris, USA, Inc.

Carl S. Nadler, Heller Ehrman, LLP, Washington, DC, Thomas J. Frederick, Winston & Strawn, LLP, Chicago, IL, Meyer G. Koplow, Jeff Wintner, Wachtell, Lipton, Rosen & Katz, New York, NY, Denise Keane, Philip Morris, USA, Inc., Richmond, VA, for Defendant/Applicant, Philip Morris, USA, Inc.

Kirk Albert Patrick, III, Heather A. Cross, Donohue Patrick, P.L.L.C., Baton Rouge, LA, for Secondary Defendants/Appellants, Von Eicken Group, Liggett Group, LLC, Sherman's 1400 Broadway NYC, Inc., Santa Fe Natural Tobacco Co., Inc., Commonwealth Brands, Inc., Liberty Brands, LLC, Compania Industrial de TabacosMonte-Paz, S.A., King Maker Marketing, Inc., Daughters & Ryan, Inc., Vibo Corporation, House of Prince A/S, Farmers Tobacco Co. of Cynthiana, Inc., Japan Tobacco International USA, Inc., Virginia Carolina Corp., Inc., Top Tobacco, LLP, Kretek International, Inc., and Peter Stokkebye Tobaksfabrik A/S, P.T. Djarum.

Robert J. Brookhiser, Elizabeth B. McCallum, Howrey, LLP, Washington, DC, for Secondary Defendants/Appellants, Liggett Group, LLC, House of Prince A/S, P.T. Djarum, Peter Stokkebye Tobaksfabrik A/S, Kretek International, Inc., Von Eicken Group, Top Tobacco, LLP, Sherman's 1400 Broadway NYC, Inc., Daughters & Ryan, Inc., Commonwealth Brands, Inc., Santa Fe Natural Tobacco Co., Inc., Japan Tobacco International USA, Inc., and King Maker Marketing, Inc.

Court composed of MARC T. AMY, BILLY HOWARD EZELL, and J. DAVID PAINTER, Judges.


AMY, Judge.

The State of Louisiana and certain tobacco manufacturers entered into a Master Settlement Agreement as the result of a suit filed by the State seeking damages related to the use of tobacco products. The manufacturers filed a motion to compel arbitration after an independent auditor did not apply an adjustment possible under the agreement in its calculation of the annual payment owed by the manufacturers. The trial court denied the motion to compel arbitration...

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